Haidilao International Holding Ltd. (HKG:6862) Just Reported, And Analysts Assigned A HK$15.79 Price Target
Investors in Haidilao International Holding Ltd. (HKG:6862) had a good week, as its shares rose 8.5% to close at HK$12.40 following the release of its interim results. Haidilao International Holding reported in line with analyst predictions, delivering revenues of CN¥22b and statutory earnings per share of CN¥0.75, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the current consensus from Haidilao International Holding's 29 analysts is for revenues of CN¥46.3b in 2026. This would reflect a satisfactory 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 3.6% to CN¥0.75. Before this earnings report, the analysts had been forecasting revenues of CN¥46.4b and earnings per share (EPS) of CN¥0.80 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Haidilao International Holding
It might be a surprise to learn that the consensus price target fell 5.6% to HK$15.79, with the analysts clearly linking lower forecast earnings to the performance of the stock price. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Haidilao International Holding analyst has a price target of HK$19.76 per share, while the most pessimistic values it at HK$11.90. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Haidilao International Holding's growth to accelerate, with the forecast 6.6% annualised growth to the end of 2026 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Haidilao International Holding is expected to grow slower than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Haidilao International Holding. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Haidilao International Holding's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Haidilao International Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Haidilao International Holding going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Haidilao International Holding .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.